Asked by Felicia Thompson on Jul 08, 2024
Verified
Which of the following describes the primary objective of financial accounting?
A) To provide useful financial information only to stockholders.
B) To provide information about a business' future business strategies.
C) To provide useful financial information about a business to help external parties make informed decisions.
D) To provide useful financial information about a business to help internal parties make informed decisions.
Financial Accounting
The field of accounting focused on the summary, analysis, and reporting of financial transactions related to a business, leading to the preparation of financial statements.
External Parties
Individuals or entities outside of a company's internal operations, such as investors, creditors, regulators, and customers, interested in its financial information.
- Recognize and tell apart the main types of financial statements.
Verified Answer
ZK
Zybrea KnightJul 10, 2024
Final Answer :
C
Explanation :
The primary objective of financial accounting is to provide useful financial information about a business to help external parties, such as investors, creditors, and regulators, make informed decisions. The information provided includes financial statements like balance sheets, income statements, and cash flow statements, which provide insights into the financial health of the business.
Learning Objectives
- Recognize and tell apart the main types of financial statements.
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